Digital Media Solutions Inc. (DMS:NYE) Analysts rate with a Buy rating, $8 target

STA Research
by: STA Research

Based on the Digital Media Solutions Inc. stock forecasts from 2 analysts, the average analyst target price for Digital Media Solutions Inc. is USD 8.00 over the next 12 months. Digital Media Solutions Inc.’s average analyst rating is Buy. Stock Target Advisor’s own stock analysis of Digital Media Solutions Inc. is Slightly Bullish, which is based on 6 positive signals and 5 negative signals. At the last closing, Digital Media Solutions Inc.’s stock price was USD 1.79. Digital Media Solutions Inc.’s stock price has changed by -1.01% over the past week, -1.56% over the past month and -82.85% over the last year.

Yesterday, Craig Hallum downgraded to a Hold rating from a Buy rating.

In the United States, Digital Media Solutions, Inc. is a digital performance marketing company that provides a software delivery platform. Brand Direct, Marketplace and Other are the three segments through which it works. The firm was established in 2012 and is based in Clearwater, Florida.

What we like:

Low volatility

The stock’s annual returns have been stable and consistent compared to its sector peers(for a hold period of at least 12 months) and are in the top quartile. Although stability is good, also keep in mind it can limit returns.

Underpriced compared to book value

The stock is trading low compared to its peers on a price-to-book value basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

Underpriced on a free cash flow basis

The stock is trading low compared to its peers on a price to free cash flow basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

High Gross Profit to Asset Ratio

This stock is in the top quartile compared to its peers on Gross Profit to Asset Ratio. This is a popular measure among value investors for showing superior returns in the long run.

 

What we don’t like:

Low market capitalization

This is among the smaller entities in its sectors with below median market capitalization. That may make it less stable in the long run unless it has a unique technology or market that can help it grow or acquire in the future.

Poor risk-adjusted returns

This company is delivering below median risk-adjusted returns to its peers. Even if it is outperforming on returns, the returns are unpredictable. Proceed with caution.

Below median dividend returns

The company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

Overpriced compared to earnings

The stock is trading high compared to its peers on a price to earning basis and is above the sector median.

Overpriced on a cash flow basis

The stock is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering buying.

 

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